30
76-10-1602, as last amended by Laws of Utah 2007, Chapter 129
31
ENACTS:
32
61-2c-405, Utah Code Annotated 1953
33
67-5-26, Utah Code Annotated 1953
34
76-6-1201, Utah Code Annotated 1953
35
76-6-1202, Utah Code Annotated 1953
36
76-6-1203, Utah Code Annotated 1953
37
76-6-1204, Utah Code Annotated 1953
38
39
Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
61-2-21
is amended to read:
41
61-2-21. Remedies and action for violations.
42
(1) (a) The director shall issue and serve upon a person an order directing that person
43
to cease and desist from an act if:
44
(i) the director has reason to believe that the person has been engaging, is about to
45
engage, or is engaging in the act constituting a violation of this chapter; and
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(ii) it appears to the director that it would be in the public interest to stop the act.
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(b) Within ten days after receiving the order, the person upon whom the order is served
48
may request an adjudicative proceeding.
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(c) Pending the hearing, any cease and desist order shall remain in effect.
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(d) If a request for a hearing is made, the division shall follow the procedures and
51
requirements of Title 63, Chapter 46b, Administrative Procedures Act.
52
(2) (a) After the hearing, if the commission and the director agree that the act of the
53
person violates this chapter, the director:
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(i) shall issue an order making the order issued under Subsection (1) permanent; and
55
(ii) may impose a civil penalty not to exceed the greater of:
56
(A) $2,500 for each violation; or
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(B) the amount of any gain or economic benefit derived from each violation.

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(b) The director shall file suit in the name of the Department of Commerce and the
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Division of Real Estate, in the district court in the county in which an act described in
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Subsection (1) occurred or where the person resides or carries on business, to enjoin and
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restrain the person from violating this chapter if:
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(i) (A) no hearing is requested; and
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(B) the person fails to cease the act described in Subsection (1); or
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(ii) after discontinuing the act described in Subsection (1), the person again commences
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the act.
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(c) The district courts of this state shall have jurisdiction of an action brought under this
67
section.
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(d) Upon a proper showing in an action brought under this section [related to an
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undivided fractionalized long-term estate,] or upon a conviction under Section
76-6-1203
, the
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court may:
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(i) issue a permanent or temporary, prohibitory or mandatory injunction;
72
(ii) issue a restraining order or writ of mandamus;
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(iii) enter a declaratory judgment;
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(iv) appoint a receiver or conservator for the defendant or the defendant's assets;
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(v) order disgorgement;
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(vi) order rescission;
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(vii) impose a civil penalty not to exceed the greater of:
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(A) $2,500 for each violation; or
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(B) the amount of any gain or economic benefit derived from each violation; and
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(viii) enter any other relief the court considers just.
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(e) The court may not require the division to post a bond in an action brought under
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this Subsection (2).
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(3) Any license or registration issued by the division to any person or entity convicted
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of a violation of Section
76-6-1203
is automatically revoked.
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[(3)] (4) The remedies and action provided in this section may not interfere with, or

86
prevent the prosecution of, any other remedies or actions including criminal proceedings.
87
Section 2.
Section
61-2b-33
is amended to read:
88
61-2b-33. Penalty for violating this chapter -- Automatic revocation.
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[(1) Any person required by this chapter to be licensed or certified who engages in real
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estate appraisal activity in this state without obtaining a license or certification or]
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(1) In addition to being subject to a disciplinary action by the board, a person who
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violates [any provision of] this chapter:
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[(a)] (a) is guilty of a class [B] A misdemeanor [punishable by a $1,000 fine and up to
94
six months in jail] upon a conviction of a first violation of this chapter; and
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[(b) shall be ineligible to apply for a license or certificate for a period of one year from
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the date of the person's conviction of the offense.]
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[(2) The division, in its discretion, may grant a license or certification to a person
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ineligible pursuant to Subsection (1) within the one-year period upon application and after an
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administrative hearing.]
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(b) is guilty of a third degree felony, upon conviction of a second or subsequent
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violation of this chapter.
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(2) Any license or registration issued by the division to any person or entity convicted
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of a violation of Section
76-6-1203
is automatically revoked.
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Section 3.
Section
61-2c-405
is enacted to read:
105
61-2c-405. Penalty for violating this chapter -- Automatic revocation.
106
(1) In addition to being subject to a disciplinary action by the commission, a person who
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violates this chapter:
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(a) is guilty of a class A misdemeanor upon conviction of a first violation of this
109
chapter; and
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(b) is guilty of a third degree felony upon conviction of a second or subsequent
111
violation of this chapter.
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(2) Any license or registration issued by the division to any person or entity convicted
113
of a violation of Section
76-6-1203
is automatically revoked.

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Section 4.
Section
67-5-26
is enacted to read:
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67-5-26. Real estate fraud prosecutor.
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(1) The state attorney general shall employ an attorney licensed to practice law in Utah
117
who:
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(a) has knowledge of the law related to mortgage fraud; and
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(b) preferably also has background or expertise in investigating and prosecuting
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mortgage fraud.
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(2) The primary responsibility of the attorney employed under Subsection (1) is the
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prosecution of real estate fraud.
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(3) The state attorney general may employ clerks, interns, or other personnel as
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necessary to assist the attorney employed under Subsection (1).
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Section 5.
Section
76-6-1201
is enacted to read:
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Part 12. Utah Mortgage Fraud Act

127
76-6-1201. Title.
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This part is known as the "Utah Mortgage Fraud Act."
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Section 6.
Section
76-6-1202
is enacted to read:
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76-6-1202. Definitions.
131
As used in this part:
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(1) "Mortgage lending process" means the process through which a person seeks or
133
obtains a mortgage loan, including solicitation, application, or origination, negotiation of terms,
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third-party provider services, underwriting, signing and closing, and funding of the loan.
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(2) "Mortgage loan":
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(a) means a loan or agreement made to extend credit to a person when the loan is
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secured by a deed, security deed, mortgage, security interest, deed of trust, or other document
138
representing a security interest or lien upon any interest in one-to-four family residential
139
property; and
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(b) includes the renewal or refinancing of any loan.
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(3) "Pattern of unlawful activity" has the same definition as in Section
76-10-1602
.

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(4) "Sensitive personal identifying information" includes:
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(a) the following information regarding an individual's:
144
(i) Social Security number;
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(ii) driver license number or other government issued identification number;
146
(iii) financial account number or credit or debit card number;
147
(iv) password or personal identification number or other identification required to gain
148
access to a financial account or a secure website;
149
(v) automated or electronic signature; and
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(vi) unique biometric data; and
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(b) any other information that can be used to gain access to an individual's financial
152
accounts or to obtain goods or services.
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(5) "Value" means the value of the property, money, or thing obtained or sought to be
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obtained.
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Section 7.
Section
76-6-1203
is enacted to read:
156
76-6-1203. Mortgage fraud.
157
A person commits the offense of mortgage fraud if the person does any of the following
158
with the intent to defraud:
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(1) knowingly makes any material misstatement, misrepresentation, or omission during
160
the mortgage lending process, intending that it be relied upon by a mortgage lender, borrower,
161
or any other party to the mortgage lending process;
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(2) knowingly uses or facilitates the use of any material misstatement,
163
misrepresentation, or omission, during the mortgage lending process, intending that it be relied
164
upon by a mortgage lender, borrower, or any other party to the mortgage lending process;
165
(3) files or causes to be filed with any county recorder in Utah any document that the
166
person knows contains a material misstatement, misrepresentation, or omission; or
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(4) receives any proceeds or any compensation in connection with a mortgage loan that
168
the person knows resulted from a violation of this section.
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Section 8.
Section
76-6-1204
is enacted to read:

170
76-6-1204. Classification of offense.
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(1) Notwithstanding any other administrative, civil, or criminal penalties, a person who
172
violates Section
76-6-1203
is guilty of a:
173
(a) class A misdemeanor when the value is or exceeds $300 but is less than $1,000;
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(b) third degree felony when the value is or exceeds $1,000 but is less than $5,000;
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(c) second degree felony when the value is or exceeds $5,000;
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(d) second degree felony when the object or purpose of the commission of an act of
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mortgage fraud is other than the obtaining of something of monetary value; and
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(e) second degree felony when the object or purpose of the commission of an act of
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mortgage fraud is the obtaining of sensitive personal identifying information, regardless of the
180
value.
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(2) The determination of the degree of any offense under Subsection (1) is measured by
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the total value of all property, money, or things obtained or sought to be obtained by a violation
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of Section
76-6-1203
, except as provided in Subsections (1)(d) and (e).
184
(3) Each residential or commercial property transaction offense under this part
185
constitutes a separate violation.
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Section 9.
Section
76-10-1602
is amended to read:
187
76-10-1602. Definitions.
188
As used in this part:
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(1) "Enterprise" means any individual, sole proprietorship, partnership, corporation,
190
business trust, association, or other legal entity, and any union or group of individuals
191
associated in fact although not a legal entity, and includes illicit as well as licit entities.
192
(2) "Pattern of unlawful activity" means engaging in conduct which constitutes the
193
commission of at least three episodes of unlawful activity, which episodes are not isolated, but
194
have the same or similar purposes, results, participants, victims, or methods of commission, or
195
otherwise are interrelated by distinguishing characteristics. Taken together, the episodes shall
196
demonstrate continuing unlawful conduct and be related either to each other or to the
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enterprise. At least one of the episodes comprising a pattern of unlawful activity shall have

198
occurred after July 31, 1981. The most recent act constituting part of a pattern of unlawful
199
activity as defined by this part shall have occurred within five years of the commission of the
200
next preceding act alleged as part of the pattern.
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(3) "Person" includes any individual or entity capable of holding a legal or beneficial
202
interest in property, including state, county, and local governmental entities.
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(4) "Unlawful activity" means to directly engage in conduct or to solicit, request,
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command, encourage, or intentionally aid another person to engage in conduct which would
205
constitute any offense described by the following crimes or categories of crimes, or to attempt
206
or conspire to engage in an act which would constitute any of those offenses, regardless of
207
whether the act is in fact charged or indicted by any authority or is classified as a misdemeanor
208
or a felony:
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(a) any act prohibited by the criminal provisions of Title 13, Chapter 10, Unauthorized
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Recording Practices Act;
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(b) any act prohibited by the criminal provisions of Title 19, Environmental Quality
212
Code, Sections
19-1-101
through
19-7-109
;
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(c) taking, destroying, or possessing wildlife or parts of wildlife for the primary purpose
214
of sale, trade, or other pecuniary gain, in violation of Title 23, Chapter 13, [Wildlife Resources
215
Code of Utah] General Provisions, or Section
23-20-4
;
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(d) false claims for medical benefits, kickbacks, and any other act prohibited by Title 26,
217
Chapter 20, Utah False Claims Act, Sections
26-20-1
through
26-20-12
;
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(e) any act prohibited by the criminal provisions of Title 32A, Chapter 12, Criminal
219
Offenses;
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(f) any act prohibited by the criminal provisions of Title 57, Chapter 11, Utah Uniform
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Land Sales Practices Act;
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(g) any act prohibited by the criminal provisions of Title 58, Chapter 37, Utah
223
Controlled Substances Act, or Title 58, Chapter 37b, Imitation Controlled Substances Act, Title
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58, Chapter 37c, Utah Controlled Substance Precursor Act, or Title 58, Chapter 37d,
225
Clandestine Drug Lab Act;